Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $10.85M
• Dividend Yield: N/A
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: 0.36%
• EPS Growth: -17.20%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.19
• Shares Outstanding: 5,268,708
• 10 Day Avg. Volume: 12,221,599
• 30 Day Avg. Volume: 6,036,172
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: -2.72
• 1Y Price Target: $4.00
• Price Target Upside: 94.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $2.50 ▲(21.36% Upside)

The overall stock score is primarily impacted by the company's financial challenges, including persistent losses and declining equity. Technical analysis suggests some positive momentum, but valuation concerns due to negative earnings and lack of dividends weigh heavily. The mixed outlook from the earnings call, with both positive strategic initiatives and significant challenges, further influences the score.

Positive Factors

Market Expansion Potential

Expanding into new indications with higher reimbursement rates can significantly increase revenue per patient, enhancing long-term growth prospects.

Clinical Efficacy

The study supports the efficacy of Strata's technology, bolstering its reputation and aiding in the pursuit of expanded reimbursement for multiple conditions.

Increased Device Placements

Increased device placements indicate strong demand and market penetration, driving future revenue growth and reinforcing the company's market position.

Negative Factors

Decline in Total Revenue

A decline in total revenue reflects challenges in maintaining sales momentum, which could hinder financial recovery and growth efforts.

International Revenue Challenges

International revenue decline due to trade disruptions and distributor issues limits global market expansion and affects overall revenue stability.

Increased Operating Expenses

Rising operating expenses, driven by legal costs, strain profitability and cash flow, challenging the company's financial health and operational efficiency.

Strata Skin Sciences Business Overview & Revenue Model

Company Description

Strata Skin Sciences (SSKN) is a medical technology company focused on developing and commercializing innovative solutions for skin diseases and conditions, primarily through its proprietary XTRAC laser system. The company operates within the dermatology sector, offering products that target psoriasis, vitiligo, and other skin disorders. Strata Skin Sciences aims to improve patient outcomes through advanced therapies and technology-driven solutions, catering to both healthcare providers and patients.

How the Company Makes Money

Strata Skin Sciences generates revenue through the sale of its XTRAC laser systems, which are used in the treatment of various skin conditions. The company also earns money from recurring revenue streams associated with the sale of consumables and maintenance services for these laser systems. Additionally, Strata engages in strategic partnerships with dermatology clinics and healthcare institutions, which helps expand its market reach and enhance service offerings. The combination of capital equipment sales, consumable product sales, and service agreements constitutes the primary revenue model for SSKN.

Strata Skin Sciences Financial Statement Overview

Summary

Strata Skin Sciences is facing significant financial challenges, characterized by persistent losses and declining equity. While there are some improvements in debt management and operating cash flow, the company needs to address its profitability issues and stabilize its cash flows to enhance its financial standing.

Income Statement

The company has shown a declining trend in revenue from the past year, with a slight growth in gross profit margin. However, the net profit margin remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved due to reduced total debt, but the equity ratio has declined. Return on equity is negative, indicating that the company is not generating profit from its equity base. The balance sheet shows a reduction in total assets and stockholders' equity.

Cash Flow

The company has managed to improve its operating cash flow, but free cash flow remains negative. The free cash flow to net income ratio is also negative, indicating cash flow challenges. The operating cash flow to net income ratio shows some improvement, but further stability is needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.85M	33.56M	33.36M	36.16M	29.98M	23.09M
Gross Profit	19.02M	19.08M	18.46M	21.77M	19.85M	14.13M
EBITDA	-7.34M	-2.84M	-3.38M	1.13M	1.73M	-165.00K
Net Income	-11.54M	-10.09M	-10.83M	-5.55M	-2.71M	-4.41M
Balance Sheet
Total Assets	30.72M	36.16M	42.02M	52.27M	46.59M	46.78M
Cash, Cash Equivalents and Short-Term Investments	5.97M	7.26M	6.78M	5.43M	12.59M	10.60M
Total Debt	1.08M	16.44M	15.63M	8.44M	8.03M	10.88M
Total Liabilities	30.41M	31.18M	29.33M	30.44M	21.18M	20.89M
Stockholders Equity	308.00K	4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow
Free Cash Flow	-2.79M	-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
Operating Cash Flow	-2.09M	188.00K	-519.00K	-1.11M	1.51M	2.10M
Investing Cash Flow	-704.00K	-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
Financing Cash Flow	1.94M	1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSKN, the sentiment is Neutral. The current price of 2.06 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.88, and below the 200-day MA of 2.45, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 41.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSKN.

Strata Skin Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	58 Neutral	$51.95M	-60.08	11.91%	―	3.30%	-112.70%
SSKN	49 Neutral	$10.85M	―	-235.41%	―	0.36%	-17.20%
VVOS	48 Neutral	$23.94M	-1.70	-140.01%	―	2.65%	70.21%
CODX	45 Neutral	$17.00M	-0.32	-69.30%	―	-91.14%	9.47%
PAVM	44 Neutral	$9.51M	0.38	178.66%	―	-73.36%	―
BMRA	40 Underperform	$8.09M	-1.30	-121.14%	―	-1.88%	23.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Strata Skin Sciences Corporate Events

Strata Skin Sciences Completes $2.42 Million Stock Offering

On September 4, 2025, STRATA Skin Sciences announced the closing of a registered direct offering, issuing 1,097,547 shares of common stock at $2.204 per share, raising approximately $2.42 million in gross proceeds. The funds are intended for working capital and general corporate purposes, potentially impacting the company’s operational capabilities and market positioning.

Strata Skin Sciences Raises $2.4M in Stock Offering

On September 2, 2025, Strata Skin Sciences entered into Securities Purchase Agreements with institutional investors to issue 1,097,547 shares of common stock at $2.204 per share, raising approximately $2.4 million in a registered direct offering. Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent, and the proceeds are intended for general corporate and working capital purposes. The offering is expected to close on or around September 4, 2025, and is made under a shelf registration statement filed with the SEC.

Strata Skin Sciences Faces Nasdaq Compliance Notice

On August 19, 2025, Strata Skin Sciences received a notice from Nasdaq indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company has until October 3, 2025, to submit a compliance plan, with the possibility of a 180-day extension if accepted. The notice does not immediately affect the company’s stock listing, but failure to comply could lead to delisting, although the company can appeal such a decision.

Strata Skin Sciences Unveils Strategic Initiatives

On August 18, 2025, Strata Skin Sciences announced an investor presentation highlighting its strategic initiatives and financial performance. The company reported operational cash flow positivity in 2024 and anticipates significant market expansion by January 2026 due to a historic CPT code expansion. This expansion could unlock over 30 million potential patients for new indications, enhancing revenue opportunities. Additionally, a lawsuit against LaserOptek could potentially bolster Strata’s cash position, reducing competition in the market.

Strata Skin Sciences Reports Q2 2025 Financial Results

On August 13, 2025, STRATA Skin Sciences reported its financial results for the second quarter ending June 30, 2025. The company highlighted significant developments, including the historic expansion of CPT codes for reimbursement, which could potentially triple the covered patient population in the US. Despite a 9% decrease in revenue compared to the previous year, STRATA is optimistic about its growth strategy, leveraging new reimbursement codes and expanding its patient pool. The company also reported a net loss of $2.5 million for the quarter, attributing some challenges to the seasonality of its business.

Strata Skin Sciences Secures Temporary Reimbursement Codes

On August 7, 2025, STRATA Skin Sciences announced its collaboration with the Centers for Medicare & Medicaid Services to secure temporary codes for expanded reimbursement of its XTRAC® excimer laser treatment, aiming to make these treatments reimbursable by 2026. This expansion, approved by the American Medical Association, includes inflammatory and autoimmune skin conditions, potentially tripling the addressable patient population and enhancing treatment economics. Additionally, recent studies have validated the efficacy of excimer laser therapy combined with JAK inhibitors for vitiligo, strengthening STRATA’s position in the dermatology market. The company also provided an update on its ongoing lawsuit against LaserOptek America, with the Federal District Court allowing the addition of LaserOptek Korea and C. Dalton, LLC as defendants, supporting STRATA’s claims of unfair competition.